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Regulatory investigations: High Court confirms auditors should decide whether client documents are privileged

In the recent decision of A v B and another [2020] EWHC 1491, the High Court decided that where an auditor is required to provide documents to a regulator, and the auditor’s client asserts privilege over such documents, it is for the auditor to decide whether the documents are in fact privileged and therefore should not … Continue Reading

Public Policy Defence against Foreign Money Judgment Fails

Earlier this month, in Lenkor Energy Trading Dmcc (“Lenkor“) v Puri (“Mr Puri“) [2020] EWHC 1432 the High Court upheld an order granting summary judgment in favour of Lenkor in relation to a debt owed to it by Mr Puri under a Dubai judgment. Mr Puri’s argument that illegality tainting the underlying transaction made enforcement … Continue Reading

Notice Requirements for Indemnity Claims: Buyer Beware

In Towergate Financial (Group) Ltd & Ors (“Buyer”) v Hopkinson & Ors (“Sellers”) [2020] EWHC 984, the High Court considered the construction of a contractual limitation period for notifying indemnity claims. The Court found that the Buyer was unable to claim under an indemnity as it had not complied with necessary notice requirements.… Continue Reading

Relief for SIPP providers as Court hands down long awaited judgment in Carey Pensions case

Yesterday, the Court finally gave judgement in Russell Adams v Options SIPP UK LLP, a significant test case on the potential liability of an execution only SIPP provider to an investor whose underlying investment in the SIPP had incurred significant losses. In a 99 page judgment, His Honour Judge Dight decided that the Defendant was … Continue Reading

Are internal regulatory compliance reviews relevant to bank misselling claims? Yes, says High Court in first virtual hearing after lockdown

Fine Care Homes Ltd v NatWest Markets plc [2020] EWHC 874 (Ch) concerns a claim for negligence and misrepresentation based on the alleged mis-selling of an interest rate hedging product. The Court recently granted, in part, Fine Care Homes Ltd’s (“Fine Care“) application for specific disclosure against NatWest.… Continue Reading

Extension of Duty of Care Owed to Employee where Audit Performed Unethically by Employer

The High Court has recently held in Rihan v Ernst and Young Global Ltd & Others [2020] EWHC 901 that four entities of the Ernst and Young global network (“EY“) were in breach of a duty to take reasonable steps to prevent a former EY partner, Mr Rihan, from suffering financial loss by reason of … Continue Reading

Court of Appeal confirms that no special rules apply to regulators when it comes to documents protected by legal professional privilege

In a welcome and robust defence of the scope of legal professional privilege (LPP), the Court of Appeal in Sports Direct International Plc v Financial Reporting Council [2020] EWCA Civ 177,  reiterated last week that there are no exceptions to the protections afforded by LPP unless it is used to hide criminal actions or where … Continue Reading

Banks avoid liability for failed tax relief plans under film-investment scheme

Litigation surrounding film finance schemes continues to rumble on in the High Court.  Earlier this month, the High Court in Barness v Ingenious Media Ltd [2019] EWHC 3299 (Ch) granted applications by two banks Coutts and Natwest (“Banks“) to strike out a number of lender claims in a case that is part of the “Ingenious litigation”.… Continue Reading

High Court finds Genworth Financial Inc. liable for 90% of AXA’s PPI misselling losses

Last week, the High Court found Genworth Financial Inc. (“Genworth“), liable to pay losses to AXA in the potential sum of £265 million, in respect of compensation that AXA had paid to settle payment protection insurance (“PPI“) misselling claims against two Genworth subsidiaries that were acquired by AXA.… Continue Reading

Watch out! Communications referenced/reproduced in settlement agreements might lose without prejudice or litigation privilege from production

In BGC Brokers LP & others v Tradition (UK) Ltd & others, the Court of Appeal dismissed BGC Brokers LP’s (“Claimant“) appeal against an order allowing inspection by several other defendants of an unredacted settlement agreement between the Claimant and Simon Cuddihy (“Third Defendant“).… Continue Reading

Freezing Order can cover cryptocurrency

The recently reported High Court decision in Vorotyntseva v Money-4 Ltd (T/A Nebus.com) shows that freezing orders can cover Bitcoin and ethereum cryptocurrency. It is another example of the Courts finding that a cryptoasset is a form of property capable of being the subject of a Court order.  The case was heard in 2018, but the judgment … Continue Reading

Business Banking Resolution Service launches new dispute resolution pilot for larger SMEs: a new Financial Ombudsman Service?

On 1 November 2019, the Business Banking Resolution Service (“BBRS”) launched a new dispute resolution pilot in preparation for the introduction of its new service, which was originally announced in November 2018 by UK Finance, a trade body for British lenders. The service aims to provide alternative dispute resolution services for “larger” eligible small and … Continue Reading

English High Court dismisses US $45 million fraud claim where proceedings already up and runnning in a Court in another jurisdiction

Where a claimant has already issued related Court proceedings in another jurisdiction, the English Court is unlikely to be the appropriate forum for the trial of a claim, according to the recent High Court decision in Punjab National Bank (International) Ltd v Srinivasan and others [2019] UKHC 89 (Ch).… Continue Reading

Former Keydata boss stuck with £76 million FCA fine

The Upper Tribunal, the independent Court that hears appeals from FCA decisions, last week upheld the regulator’s decision to fine Stewart Ford, the former CEO of Keydata Investment Services Limited, a huge £76million (the largest FCA fine on an individual) and ban him from working in the financial services industry. The Tribunal decided that the FCA had been correct to ban and fine … Continue Reading

Court reviews summary judgment jurisdiction in dispute over pension plan guarantee

The recent High Court decision in Caribonum Pension Trustee Limited v Pelikan Hardcopy Production AG [2018] EWHC 2321 (Ch) will provide some comfort for pension plan trustees owed money by insolvent sponsoring employers by allowing trustees to pursue guarantors within the same group for those debts. What was contended to be an abuse of Court process … Continue Reading
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